FriendFinder Networks Inc. (NASDAQ: FFN) reported its earnings today and they can only be described as brutal.
Revenue for the quarter ending September 30, 2011 was $82.7 million, 5% off third-quarter figures a year ago.
Income from operations for the third quarter was $14.7 million, a 32% drop from third-quarter figures a year ago.
The company had loss for the third quarter of $5.4 million.
The big news out of the report and the earnings conference call that followed is that the company is going to reorganized its business operations by splintering the company into 14 divisions.
The company is creating a separate unit for casual dating, social commerce, alternative lifestyles, gaming and interactive video among others.
Each division will be responsible for its own financial performance.
“We believe that designated business units will help us better deploy technology and drive revenue in business units that have traditionally lacked focused attention and dedicated resources,” said Marc Bell, FriendFinder’s CEO.
Shares of the company are sitting at $1.45 down another 22% today after its IPO debuted not long ago at $10.
So if you invested $10,000 in FriendFinder Network at the IPO price your shares would be worth now just $1,450.
You should have bought a domain.
Wow, the market cap on this is only $45M. It is going to drop off being listed on Nasdaq if this keeps up.
They have an expense problem, the only question is did they need to spend that excess expense in order to generate the revenues or was it wasteful expense.
Could be a good gamble at this price point… depends on if the financials are done correctly or not.
TLD, majority of their expense is going to service their heavy debt load.
$450M is their current debt load.
They’re biggest problem is the traffic and growth actually.
2 years ago they stiffed the world’s biggest affiliate for about $100k. Today they’re stuck without access to this network that control’s as much as 50% of all adult traffic.
scamming picture theives getting their just desert at last.